'When the show first began, 'Hamilton' star Anthony Ramos resided in New York City on a weekly budget of $420, which he described as a challenging time.'

Anthony Ramos, a Grammy-winning actor, singer, and songwriter, faced the challenge of learning how to manage sudden wealth while playing the lead role in the hit Broadway musical "Hamilton."

Ramos, one of the original cast members of the musical, played the dual roles of John Laurens and Phillip Hamilton. During the show's off-Broadway debut, he earned only $420 per week, which he revealed to host Vivian Tu on a recent episode of SoFi's Richer Lives podcast.

Ramos said that receiving the first paycheck was great because it allowed him to get paid for doing something he loved again, but he was still facing challenges in New York.

In 2015, Ramos' Broadway production debuted, bringing him a substantial pay raise. However, he soon realized that expenses such as taxes, manager, and agent fees could quickly eat away at his earnings.

"An ensemble member likely earns $1,800 per week, which is then taxed, with 10% going to the agent and 10% to the manager."

As his income grew, Ramos found that he was not as skilled with money as he believed. He admitted, "I thought I was better with money than I actually was, but the more money I earned, the worse I became."

Ramos' wake-up call

Ramos eventually hired a business manager to help him manage his finances. After telling her he wanted to go on a vacation to Hawaii, his "epiphany moment" came when she informed him that he would no longer be able to afford it due to overspending just a few weeks later.

""I was excited for that, but now I can't do it because I feel irresponsible," he said."

Ramos learned that seeking help with managing money is acceptable, especially if one recognizes their own inadequacy in this area.

He claims that his business manager aided him in comprehending his finances and instructed him to refrain from spending money he had not yet earned from future performances.

Anyone can implement the strategy of rewriting sentences into alternative versions, regardless of their income source.

One strategy for improving your money skills

To improve your money management, you don't need to be a celebrity; all you need is to understand your income and expenses.

By following the "conscious spending" plan of self-made millionaire Ramit Sethi, you can categorize your spending into four groups.

1. Fixed costs: Rent, mortgage, utility bills, student loan payments
2. Savings: Emergency fund and money for large purchases or future vacations
3. Investments: 401(k) or Roth IRA contributions
4. "Guilt-free spending": Dining out, shopping, splurges

Sethi advises dividing your money into financial priorities first, allowing the rest of your income for things you love.

By tracking your spending, you can adjust your habits to achieve your financial objectives, as Ramos emphasized on the podcast.

"Ramos said, "You need to consider what you have right now. What do I have? How can I make the most of it?""

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